Oxford Lane Capital Corp (OXLC) 2027 Q1 法說會逐字稿

Thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Oxford Lane Capital Corp announces net asset value and selected financial results for the first fiscal quarter 2027 conference call. (Operator Instructions)

感謝您耐心等候。我叫 Tina，今天將擔任本次電話會議的接線員。此刻，我謹代表公司歡迎各位參加 Oxford Lane Capital Corp 宣布 2027 財政年度第一財季每股淨資產價值及部分財務結果的電話會議。（接線員指示）

It is now my pleasure to turn the call over to Mr. Jonathan Cohen, CEO. Please go ahead.

現在我很榮幸將電話交給 Jonathan Cohen 先生，執行長。請開始。

Thank you very much. Good morning, everyone. Welcome to the Oxford Lane Capital Corp first fiscal quarter 2027 earnings conference call. I'm joined today by Saul Rosenthal, our President; Bruce Rubin, our CFO; and Joe Kupka, our Managing Director and Portfolio Manager.

非常感謝。各位早安。歡迎參加 Oxford Lane Capital Corp 2027 財政年度第一財季財報電話會議。今天與我一同出席的有：總裁 Saul Rosenthal、財務長 Bruce Rubin，以及董事總經理兼投資組合經理 Joe Kupka。

Bruce, could you open the call with the disclosure regarding forward-looking statements?

Bruce，你可以先就前瞻性陳述的揭露事項開場嗎？

Sure, Jonathan. Today's conference call is being recorded. An audio replay of the call will be available for 30 days. Replay information is included in our press release that was issued earlier this morning. Please note that this call is the property of Oxford Lane Capital Corp, and any unauthorized rebroadcast of this call in any form is strictly prohibited.

好的，Jonathan。今天的電話會議將被錄音。本次會議的音訊重播將提供 30 天。重播資訊已包含在我們今天稍早發布的新聞稿中。請注意，本通話為 Oxford Lane Capital Corp 之財產，任何形式的未經授權轉播均嚴格禁止。

At this point, please direct your attention to the customary disclosure in this morning's press release regarding forward-looking information. Today's conference call includes forward-looking statements and projections that reflect the company's current views with respect to, among other things, future events, and financial performance.

此時，請各位留意今天早上新聞稿中關於前瞻性資訊的慣例性揭露。今天的電話會議包含前瞻性陳述與預測，反映公司目前對於（其中包括）未來事件與財務表現的看法。

We ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from those indicated in these projections. We do not undertake to update our forward-looking statements unless required to do so by law.

我們請各位參閱公司最近向美國證券交易委員會（SEC）提交的文件，其中載有可能導致實際結果與這些預測所示結果出現重大差異的重要因素。除非法律要求，否則我們不承擔更新前瞻性陳述之義務。

During this call, we will use terms defined in the earnings release and also refer to non-GAAP measures. For definitions and reconciliations to GAAP, please refer to our earnings release posted on our website at www.oxfordlanecapital.com.

在本次通話中，我們將使用財報新聞稿中所定義的術語，並且也會提及非 GAAP 衡量指標。如需定義以及與 GAAP 的調節，請參閱我們發布於網站 www.oxfordlanecapital.com 的財報新聞稿。

With that, I'll turn the presentation back over to Jonathan.

接下來，我把簡報交回給 Jonathan。

Thank you, Bruce. On June 30, 2026, our net asset value per share stood at $10.74 compared to a net asset value per share of $10.56 as of the prior quarter.

謝謝你，Bruce。截至 2026 年 6 月 30 日，我們每股淨資產價值為 10.74 美元，相較於上一季末每股淨資產價值 10.56 美元。

For the quarter ended June, we recorded GAAP total investment income of approximately $87 million, representing a decrease of approximately $6.9 million from the prior quarter. The quarter's GAAP total investment income consisted of approximately $83.7 million from our CLO equity and CLO warehouse investments and approximately $3.4 million from our CLO debt investments and from other income.

截至 6 月止的季度，我們依 GAAP 認列的投資總收益約為 8,700 萬美元，較上一季減少約 690 萬美元。本季 GAAP 投資總收益包括：來自我們 CLO 股權及 CLO 倉儲投資約 8,370 萬美元，以及來自我們 CLO 債務投資與其他收入約 340 萬美元。

Oxford Lane recorded GAAP net investment income of approximately $50.2 million or $0.51 per share for the quarter ended June, compared to approximately $54.5 million or $0.56 per share for the quarter ended March 31.

Oxford Lane 在截至 6 月止的季度依 GAAP 認列的淨投資收益約為 5,020 萬美元（每股 0.51 美元），相較於截至 3 月 31 日止季度約 5,450 萬美元（每股 0.56 美元）。

Our core net investment income was approximately $93.4 million or $0.95 per share for the quarter ended June compared with approximately $100.7 million or $1.03 per share for the quarter ended March 31. And as of June 30, we held approximately $66.2 million in newly issued or newly acquired CLO equity investments that had not yet made their initial distributions to Oxford Lane.

截至 6 月止季度，我們的核心淨投資收益約為 9,340 萬美元（每股 0.95 美元），相較於截至 3 月 31 日止季度約 1.007 億美元（每股 1.03 美元）。此外，截至 6 月 30 日，我們持有約 6,620 萬美元的新發行或新取得之 CLO 股權投資，尚未向 Oxford Lane 進行首次分配。

For the quarter ended June, we recorded net unrealized or appreciation of investments of approximately $54.5 million and net realized losses of approximately $28.4 million.

截至 6 月止季度，我們認列投資的未實現淨增值（或升值）約 5,450 萬美元，以及已實現淨損失約 2,840 萬美元。

We had a net increase in net assets resulting from operations of approximately $76.3 million or $0.78 per share for the first fiscal quarter. As of June 30, the following metrics applied. We note that none of these metrics necessarily represented a total return to shareholders.

第一財季因營運所致的淨資產增加約 7,630 萬美元（每股 0.78 美元）。截至 6 月 30 日，適用以下指標。我們指出，這些指標未必代表股東的總報酬。

The weighted average effective yield of our CLO equity investments at current cost was 11.1%, down from 11.7% as of March 31. The weighted average cash distribution yield of our CLO equity investments at current cost was 16.3%, down from 16.7% as of March 31.

以目前成本計算，我們 CLO 股權投資的加權平均有效殖利率為 11.1%，低於 3 月 31 日的 11.7%。以目前成本計算，我們 CLO 股權投資的加權平均現金分配殖利率為 16.3%，低於 3 月 31 日的 16.7%。

We note that the cash distribution yields calculated on our CLO equity investments are based on the cash distributions we received or which we were entitled to receive at each respective period end.

我們指出，對 CLO 股權投資所計算的現金分配殖利率，是以我們在各期末實際收到或有權收到的現金分配為基礎。

During the quarter ended June 30, we made additional CLO investments of approximately $37.8 million, and we received approximately $50.7 million from sales and from repayments.

在截至 6 月 30 日止季度，我們新增 CLO 投資約 3,780 萬美元，並自出售及償還中收回約 5,070 萬美元。

On July 23, our Board of Directors declared monthly common stock distributions of $0.20 per share for each of the months ending October, November and December of 2026.

7 月 23 日，我們董事會宣告 2026 年 10 月、11 月與 12 月各月的普通股每股月度配息為 0.20 美元。

With that, I'll turn the call over to our Managing Director, Joe Kupka.

接下來，我把電話交給我們的董事總經理 Joe Kupka。

Thanks, Jonathan. During the quarter ended June 30, 2026, US loan market performance improved versus the prior quarter. US loan price index increased from 94.63% as of March 31 to 94.96% as of June 30. The increase in US loan prices led to an approximate 4-point increase in median US CLO equity net asset values. Additionally, we observed median weighted average spreads across loan pools within CLO portfolios decreased modestly to 302 basis points compared to 304 basis points last quarter.

謝謝你，Jonathan。在截至 2026 年 6 月 30 日止季度，美國貸款市場表現較上一季改善。美國貸款價格指數自 3 月 31 日的 94.63% 上升至 6 月 30 日的 94.96%。美國貸款價格上升使美國 CLO 股權淨資產價值中位數約增加 4 點。此外，我們觀察到 CLO 投資組合內貸款池的加權平均利差中位數小幅下降至 302 個基點，上一季為 304 個基點。

The 12-month trailing default rate for the loan index decreased to 0.97% by principal amount at the end of the quarter from 1.44% at the end of March. We note that out-of-court restructurings, exchanges and subpar buybacks, which are not captured in the cited default rate remain elevated. CLO new issuance for the quarter totaled approximately $33 billion, reflecting an approximate $14 billion decrease from the previous quarter.

貸款指數的 12 個月滾動違約率（以本金金額計）於季末降至 0.97%，低於 3 月底的 1.44%。我們指出，庭外重整、交換以及折價回購等情形並未反映在上述違約率中，且仍維持在較高水準。本季 CLO 新發行總額約為 330 億美元，較上一季約減少 140 億美元。

Additionally, the US CLO market saw approximately $94 billion in reset and refinancing activity in Q2 2026, compared to approximately $56 billion in the previous quarter. Oxford Lane remained active this quarter, trading over $85 million in CLO equity.

此外，2026 年第二季美國 CLO 市場的重設與再融資活動約為 940 億美元，上一季約為 560 億美元。Oxford Lane 本季仍維持活躍，CLO 股權交易金額超過 8,500 萬美元。

During the quarter, we also led or participated in numerous resets and refinancings, taking advantage of tighter liability spreads to lower the cost of funding and lengthen the weighted average reinvestment period of Oxford Lane's equity portfolio from October 2029 to November 2029. We continue to evaluate existing investments for opportunities to improve the economics of our CLO equity positions.

本季期間，我們也主導或參與多項重設與再融資，利用更緊縮的負債端利差來降低資金成本，並將 Oxford Lane 股權投資組合的加權平均再投資期間由 2029 年 10 月延長至 2029 年 11 月。我們將持續評估既有投資，尋找改善我們 CLO 股權部位經濟效益的機會。

In the current market environment, we intend to continue to utilize our opportunistic and unconstrained CLO investment strategy across US CLO equity, debt, and warehouses as we look to maximize our long-term total return. And as a permanent capital vehicle, we've historically been able to take a longer-term view towards our investment strategy.

在目前的市場環境下，為了最大化我們的長期總報酬，我們打算持續在美國 CLO 股權、債務及倉儲等領域，運用我們機會型且不受限的 CLO 投資策略。作為一個永久資本載體，我們過去一向能以較長期的視角來看待我們的投資策略。

With that, I'll turn the call back over to Jonathan.

那麼，我把電話交回給 Jonathan。

Thanks, Joe. Additional information about Oxford Lane's first fiscal quarter performance has been uploaded to our website at oxfordlanecapital.com.

謝謝你，Joe。關於 Oxford Lane 第一個會計年度第一季表現的補充資訊，已上傳至我們的網站 oxfordlanecapital.com。

And with that, operator, we're happy to open the call up for questions.

那麼，接線員，我們很高興開放電話供提問。

(Operator Instructions) Erik Zwick, Lucid Capital Markets.

(接線員指示) Erik Zwick，Lucid Capital Markets。

Thank you. Good morning, guys.

謝謝。各位早安。

Good morning, Eric.

早安，Eric。

A few questions here. I wanted to maybe start with one of the topics Joe, kind of, mentioned there towards the end. Just in terms of the opportunities to continue executing resets and refis, it sounds like liability spreads have tightened and hopefully, they kind of remain so here for the next little bit. But can you maybe just frame, kind of, the opportunity you have here in the near term to continue improving the cost of funding in the portfolio?

我這邊有幾個問題。我想先從 Joe 在最後提到的一個主題開始。就持續執行重設（reset）與再融資（refi）的機會而言，聽起來負債端利差已經收斂，並希望在接下來一段時間能維持這樣的狀況。但你能否說明一下，短期內你們在持續降低投資組合資金成本方面，有哪些機會？

Sure. I think year-to-date, we've completed about 25 resets or refinancings, kind of, taken on a case-by-case basis, whether they're going to be a refi or reset for the remainder of our book looking from the end of this quarter on. I think about 30% of our book in terms of market value could be in the money for a refi or a reset transaction through the end of the year. And then looking forward to 2027, an additional 30% of the market value. So overall, over half of our book has potential short-term optionality embedded in it.

當然。我想今年迄今，我們已完成大約 25 筆重設或再融資；至於本季結束後、針對剩餘部位，我們會逐案評估是做再融資或重設。我認為以市值計算，我們的投資組合中約有 30% 在今年底前可能具備「在價內」條件，可進行再融資或重設交易。再往前看至 2027 年，另外還有約 30% 的市值。因此整體而言，我們超過一半的投資組合都內含短期的選擇權彈性。

Excellent. That's very helpful. Thanks, Joe. Maybe flipping in towards the investment outlook. I know early in the year, when you kind of restructured the dividend, you mentioned you want to be able to take advantage of more investment opportunities. Curious if you could just talk maybe specifically to the secondary market, what you're seeing today in terms of liquidity.

太好了。這非常有幫助。謝謝你，Joe。接著談談投資展望。我知道年初你們在調整股利結構時提到，希望能把握更多投資機會。想請你具體談談次級市場，目前在流動性方面你們看到什麼？

I know it was pretty slow in the first calendar quarter of the year. It sounds like it may have been a little bit better here in 2Q, but just maybe what you're seeing here and what you expect going forward? And are you seeing attractive opportunities to add to the portfolio and potentially help the future yield going forward?

我知道今年第一個曆季相當清淡。聽起來第二季可能好一些，但想請問你們目前看到的情況以及對未來的預期？另外，你們是否看到具吸引力的加碼機會，能夠擴充投資組合並可能提升未來收益率？

Yeah. We're definitely seeing an improved bid-ask spread, especially if we compare to what we saw towards the end of March. We're seeing a very interesting basis in terms of the basis between Tier 1 and Tier 2 managers. So especially if you look at some of these lower-tier managers that trade at wider yields, they can be very attractive on both a cash-on-cash and ultimate yield basis. So we're seeing a lot of opportunities just on an absolute basis and also to do some relative value trading in our portfolio.

是的。我們確實看到買賣價差有所改善，尤其是與 3 月底相比。我們也看到在 Tier 1 與 Tier 2 管理人之間的利差基差（basis）相當有意思。因此，特別是一些較低層級管理人所管理的部位，因交易殖利率較高，無論以現金回收率（cash-on-cash）或最終殖利率來看都可能非常具吸引力。所以我們看到很多絕對報酬機會，也有機會在投資組合內進行相對價值交易。

And Erik, when Joe references lower-tier managers, we're referring principally to their perception in the primary and secondary CLO markets, not their virtuosity.

Erik，當 Joe 提到較低層級的管理人時，我們主要是指他們在初級與次級 CLO 市場中的市場觀感，而不是指他們的能力高低。

Got it. That's helpful. And then I assume some of the -- you're active -- definitely more active in the second-quarter trading. I'm sure some of that contributed to the net realized losses that were recorded there in the quarter. So just kind of curious of positions that you may have traded out of.

了解。這很有幫助。另外我想你們在第二季交易更為積極。我確定其中一部分也導致本季認列的已實現淨損失。所以想請教一下，你們可能賣出了哪些部位？

Were there any, kind of, common characteristics or why were those particular investments chosen? Was there anything on the credit front or just you saw better opportunities to rotate into new investments to replace them that had better -- more attractive yields, long-term yield, kind of, components.

這些部位是否有共同特徵？或為什麼會選擇賣出這些特定投資？是信用面有什麼因素，還是你們看到更好的機會，將資金輪動到新的投資以取代它們，並具備更好、更具吸引力的殖利率與長期收益特性？

Sure. Yeah, I think it mainly went along with our thesis of trading out of some of these more sought-after managers, as Jonathan said, buying some of the less regarded managers just given the widening basis. We also had some legacy positions finally roll off just their indentures were finally discharged. So that flowed in as well. But yes, that made up the bulk of it.

當然。是的，我想主要是配合我們的投資論點：如 Jonathan 所說，賣出一些市場較追捧的管理人部位，並在基差擴大之際買入一些較不受青睞的管理人部位。我們也有一些舊有部位最終到期退出，因為它們的信託契約（indenture）終於解除。所以這部分也有影響。但沒錯，主要就是這些因素。

Yeah, it was nice to see the weighted average investment period move out a little bit longer as well. So -- see, I think last one for me, maybe just in terms of -- you've made these -- some of the new investments, rotating the portfolio a little bit, made some new investments as well that have yet to make first distribution. So just in terms of thinking about the cash distribution yield on the portfolio, when can we get to the point where that kind of bottoms out and starts expanding again? Curious if you have any thoughts there.

另外也很高興看到加權平均投資期也稍微拉長了一些。所以——我想我最後一個問題是：你們做了一些新投資、也稍微輪動了投資組合，其中一些新投資尚未進行首次分配。就投資組合的現金分配殖利率而言，何時可能觸底並再次回升？想請問你們是否有任何看法。

So yeah, I would say April payments stabilized a bit. We did see another leg down in the July payments just as we see continued spread compression. That said, it has slowed down year to date. So it all depends on really the loan market and where refinancing and repricings happen.

是的，我會說 4 月的付款（分配）稍微穩定了一些。但在 7 月的付款我們又看到再下一階，因為利差持續收斂。話雖如此，今年迄今收斂速度已放緩。所以最終還是取決於貸款市場，以及再融資與重新定價發生的位置與程度。

Yeah, I don't want to make any particular predictions, but July has definitely been a low point if you look compared to January and April. So hopefully, we see some pickup from here, but that's hard to say.

是的，我不想做任何特定預測，但如果你把 7 月與 1 月、4 月相比，7 月確實是個低點。所以希望接下來能有所回升，但這很難說。

Right. Hopefully, driven at least in part, Erik, by the driver that you referenced earlier, which is the refi and reset market for CLO liability stacks, which is, of course, to the extent that that's an active market and a very natural offset to spread compression in the US syndicated corporate loan market.

沒錯。Erik，希望至少部分是由你先前提到的驅動因素所帶動，也就是 CLO 負債結構的再融資與重設市場；當然，只要那是一個活躍的市場，它就能很自然地抵銷美國聯貸企業貸款市場的利差收斂。

Yes. Yes, that would be great if you guys can continue resetting and refi. And actually, I did have, I think, one other -- no, I'm actually good.

是的。是的，如果你們能持續做重設與再融資就太好了。其實我還有——不，我沒問題了。

Thank you. That's all I have right now.

謝謝。我目前就這些。

All right. Thank you very much, Erik. Appreciate it.

好的。非常謝謝你，Erik。感謝。

And with no further questions in queue, I will now hand the call back over to Jonathan Cohen, CEO, for closing remarks.

由於等候隊列中沒有其他問題，我現在把電話交回給執行長 Jonathan Cohen 作結語。

Thanks very much. Thanks to everybody who took the time to listen to our call, either live or on the replay today, and we look forward to speaking to you again soon. Thanks very much.

非常感謝。感謝今天撥冗收聽我們電話會議的各位，無論是即時收聽或稍後回放，我們期待很快再與各位交流。非常謝謝。

An audio recording of the event will be available via Echo replay through Thursday, August 27, at 11:59 PM. This does conclude today's conference call. You may now disconnect.

本活動的音訊錄音可透過 Echo 回放服務取得，至 8 月 27 日（週四）晚間 11:59 截止。今天的電話會議到此結束。您現在可以掛線。